What Changed In The Solar Energy Industry In November?
Moving forward with our monthly What Changed … ? feature, below is a rundown of notable solar energy news — changed in the solar industry — during the month of November.
Moving forward with our monthly What Changed … ? feature, below is a rundown of notable solar energy news — changed in the solar industry — during the month of November.
The one factor that makes conventional generation riskier than renewables is the cost of fuel. When it comes to long term planning, the cost of sunshine and wind is fixed. No need to worry about embargoes, shortages, or one nation cornering the market and driving up prices. The era of renewables is upon us, and not a moment too soon.
We have a reason to cheer! Lazard’s Levelized Cost of Energy Analysis – Version 12.0 has been released. There are times that I love numbers. And these are great numbers.
Murray Energy, the largest private-owned coal company in the United States, has been quietly bankrolling opposition to the 20.7 megawatt (MW) Icebreaker Wind project set to be built on Lake Erie in a move that, while not illegal, can easily be described as deceptive.
The International Renewable Energy Agency (IRENA) has been much in the news since it released its report Renewable Power Generation Costs in 2017. Article after article has told us that it said we could see the costs of renewable energy drop to meet those of fossil fuels by 2020.
… And What it Might Have Missed …
Lazard has produced its latest analysis of energy production costs in Lazard’s Levelized Cost of Energy Analysis – Version 11.0. Lazard is one of a small group of organizations whose incomes are dependent on customers who are investors and need the most accurate information possible. If Lazard makes a statement that is widely off the mark, it means that investors will not make the money they feel they should, and in fact they may even lose money. So Lazard has a powerful vested interest in being right. This is what makes its Levelized Cost of Energy (LCOE) information so important.
Lazard is a global asset management company that tracks the cost of producing electricity, among other things. It uses a measure called the Levelized Cost of Energy (LCOE), which averages the estimated costs of construction, maintenance, and fuel for electricity generating assets over the number of megawatt-hours that each is expected to produce over its lifetime. In simple terms, it is one way of comparing different ways of making electricity to see which cost more and which cost less.
Nearly 10 months ago, Tony Seba, author of the 2014 book Clean Disruption of Energy and Transportation, posted a video on YouTube, “CleanDisruption.” In both, he projected that a nearly complete disruption of the energy business would begin in 2020 and be well underway by 2022, the year he projects for distributed solar power with battery backup to fall below the cost of transmitting electricity. It is a point at which centralized power plants, if they are to compete with solar-plus-storage, will have to provide power for free. He believes that all centralized electric power producers will be obsolete by 2030, as will conventional cars and utility companies.
2016 was a pretty huge year for cleantech, but I think it was more like a foundation-laying year, whereas 2017 and 2018 will be the breakout years in which we start seeing the walls of the beautiful cleantech transition that foundation is going to support. (Building-integrated solar PV walls with EV charging plugs, of course.)
Q. What will be the most important technological development over the next 10 years that will have the greatest impact in reducing climate change risks? A. RE<